Targeted PRSI relief call for small businesses under pressure – Murphy

Small businesses struggling to cope with rising costs should be supported with a targeted PRSI rebate scheme, a Fine Gael TD has said.

Deputy Michael Murphy said that many small businesses are grappling with rising costs, which some fear may pose a very real threat to their viability.

Deputy Murphy said: “Ongoing conflicts, particularly in the Middle East and Ukraine, continue to really impact Irish businesses who are dealing with higher energy, transport and raw material costs.

“The swift action that has been taken by Government to help households and businesses with the cost of fuel and energy from today is very positive, but it’s important to acknowledge the contribution the SME sector makes towards sustaining local economies around the country.

“Small businesses are the backbone of our local communities. They invest locally, spend locally, and employ locally. It’s crucial that they are protected.

“We need to review the current PRSI model to assess how a rebate scheme which would benefit employers can be introduced. A PRSI rebate scheme linked to lower-paid employees would directly ease the burden on small employers, while helping to safe-guard jobs.”

Deputy Murphy acknowledged the Government has made positive strides to address the cost of doing business through the introduction of the Increased Cost of Business Scheme, the Energy Efficiency Grant Scheme, as well as the establishment of the Cost-of-Business Advisory Forum, which is due to issue its report before summer.

“But there is more scope to make sustaining a business easier for employers. Supporting small businesses is not solely about profit margins, it is about protecting the fabric of our communities and reviewing employers’ PRSI should be the next step,” Deputy Murphy concluded.